we also have the president out campaigning for his economic plan. america works best when it grows from the middle out, not the top down. there is a bankruptcy hearing that will be held today. the automakers are now proving to be a bright spot. we will tell you how that is working out. a big story for the wall street community. charlie gasparino with the details. we have all of that and more coming up this hour of markets now. ♪ dagen: you are looking at video right now, good morning, everybody, of a fire burning earlier off the coasts of louisiana.

officials are saying it will not be as damaging as back in 2010. the fire is located just 150 miles from that bp oil spill where that happened. connell: the rig operator is hercules offshore. the stock price today is down by a little more than 4%. dagen: phil flynn is in the pits of the cmb with more on this. >> it has backed off. as far as the market impact of this particular blowout right now, it is not that much. this particular well was not in production. we had this rig getting ready to

prepare for more production down the road. they already knew that they had a problem with this well. it was trying to fix the problems that they already had with this well. the impact is about tighter regulation in the gulf of mexico. regulations became a lot more stringent. there is a concern that a mishap like this could make it even more difficult to bring production online in the future. this is a shallow water rig. they have a lot of experience with tapping these kinds of rigs in shallow water. it will not be anything like the challenging situation they had where you are drilling close to a mile underwater. again, you have to worry about the regulation side.

>> this is not bp all over again. this is going back in time back to april 2010. it is dramatic photos that you see. maybe in washington they start looking at this. we have trouble on our hands from the company's point of view. >> absolutely. there is a bigger microscope on all of these drilling companies after the deepwater horizon. they look at all the checks that bp had to write for the damage. to see if there was anything wrong, more than like lee, it seems like the company did everything right. they knew there was a problem. they call them people to help.

they evacuated everybody. they did everything right, in this particular situation. before the fire started, they had people on the scene that were going to try to go in and fix the problem, but they deemed it too dangerous. it may be easier to deal with now because you do not have the threat of explosion. right now, the coast guard, other people are on the scene. i do not think you will see a repeat with what you saw with deepwater horizon. this happened at a time where we had another gulf of mexico platform shutdown. it got shut down yesterday. interestingly enough, it was not because of what was happening out on the street, it was what was happening on land.

they could have to deal with a possible tropical storm that could be headed in that direction. it is too early to tell. dagen: phil, thank you so much for that terrific analysis. phil flynn at this cmb. connell: shifting gears now. nicole petallides on the floor of the new york stock exchange. nicole: there is a lot to watch here today. we have a mixed market on wall street. the dow and the s&p are pulling back to a certain extent. the tech heavy nasdaq within of arrow today. the nasdaq is up one third of

1%. we are in the thick of earnings season. we are seeing lots of names on the move. we are also watching boeing. ford also a winner. we have had deals that we have been watching from maidenform brands and also michael dell's team beefing up their offer over at dell. those are names that we are watching very closely. oil and gold are pulling back. dagen: we will talk about ford and general motors. connell: president obama addressing the economy. the first of speeches he gives this afternoon. dagen: it is always how you spend it. rich edson kendig through all the verbiage and tell you what is really at play here.

rich: one of the preview messages that the white house gave, the president will talk about an economy where everyone has a shot and opportunity. not when our economy is winner take all. the administration not really previewing anything new. we spoke to a senior advisor, she says, when it comes to an action in washington, basically printed on congress. >> these are critical for business. they are ones that the republican party has traditionally supported. when will they get back to what they have traditionally done? that is simply just say no.

rich: republicans in congress have been previewing his speech, as well. instead they say the president is just bashing congress. >> instead of taking responsibility for his failure to lead, he will probably try to cast some struggle between those that believe in "investing in the country" and those that want to eliminate paper roads or stop signs or whatever ridiculous strong hand he invent this time. dagen: thank you so much for that. rich edson down in washington. take a look at this.

president obama's approval rating dropping to just 45%. ron christie is a former assistant to george w. bush joining us from george w. bush. no harm, no foul. >> i think that is right. the american people expect their president to lead. this president has spent his entire term in office blaming people.

the american people have put in a representative to be responsive to them. dagen: what is happening now? his centerpiece legislation is coming apart at the seams. it is not working right now, particularly with the one-year delay. can the president do anything? i also point out again, cutting full-time workers or reducing people's hours below 30 hours so they do not have to worry about the mandate. this is a travesty.

>> we need to pass the bill. we see it is crippling businesses. part-time work seems to be the norm. we have fewer people working today than when the president came in office. i think it is frankly disruptive to our economy rather than getting it back on track. i think republicans should have had the opportunity to work closely with them. we should have found a way to pull together small businesses. having a one-size-fits-all solution, i think that is a

mistake. we are seeing that by the way businesses react, as well as consumers. dagen: stay tuned for lou dobbs poll coverage. that is coming up halfway through the next hour. connell: we have the dell meeting in taxes on hold again. the last and final offer to take the company private. dagen: why it all comes down to sales of the iphone. connell: they could be the lone bright spot. the automakers. they are bringing their bottom line on profits. we will dig through those numbers. we talked about it earlier with the red fire in the gulf. ♪

the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

dagen: eight quarter past the hour. looking at caterpillar. nicole: we have the dow down 38 points. it is down about 2% at the

moment. it's profits shrank 43%. not good news there. revenues were sliding. their margins have contracted. ultimately, going forward, are things looking better? no, they are not. dagen: thank you, nicole. connell: let's get to dell now. silver lake partners revise their bid for the company. >> about $150 million. what they are saying is this is a traditional amendment to their

offer. the special committee that is reviewing the buyout plan a proof a change in the voting rules. essentially, right now the unaffiliated shareholders are counted as no votes. they say that the presumption that the shares should be treated as if they voted against the transaction is unfair. they will only raise the bid if the special committee votes to change the rules. we believe that $13.75 a share is a full and fair price. they are willing to change the guidelines if it is $14 per share. they have not confirmed that with fox business network. we have been reaching out to michael dell.

the next step in all of this, if the special committee says yes, is friday, august 2. connell: thank you, adam. dagen: more iphones sold than people expected. now what? connell: lance armstrong, he is making the argument that the post office should have known about his drug use. he wants to keep the sponsorship money. here are currencies today. back with more on markets now in just a moment. ♪ weekdays are for rising to the challenge.

they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next.

>> 22 minutes past the hour. in moscow, the lawyer for edward snowden says his request for temporary asylum in russia is still undecided. he has been in the transit zone for more than a month. white house says it is seeking clarification from russian

authorities about his status. after another scandal, pressure is mounting on anthony wiener to drop out of the case. he admitted doing it again and apologized again. this time with his wife by his side. queen elizabeth went to kensington palace this morning and met her new great-grandson. george is the favorite followed by james. those are your news headlines. back to connell. connell: thank you very much. here is apple. we will spend the next few minutes talking about it. the stock, as yoo see, just

about 6% higher today. we are talking about the markets. good to see you, ryan. it is kind of different the way we look at the stock as a company. the last four quarters, the stock was down the day after earnings. i do not know if this is a bounce back, but how do you look at these numbers? >> a big number coming out. you scroll down to the bottom, you see their prices are down in every product statement. connell: it was a big calling card for apple for years.

so much so that there are big rumors that they will start selling a cheaper iphone. we would have never had that conversation a few years ago. >> i almost say, who cares. they need a transformative product. things that look similar to the older ones, but thinner and a brighter screen. that will not cut it. connell: we are waiting for an iphone. we are waiting for an ipad. >> the iphone established a new market. i do not think you will get the guidance.

$106 billion in cash overseas. connell: do you like other ones in that group? >> i would be more inclined to google. connell: where are you on things for the next few months? >> you are not getting any negative significant development . the fed statement toward the end of this month, ultimately, what will come out negative in the market. connell: thank you for coming on today. appreciate it.

dagen: detroit is flat on its back, but not the automakers. some good news ahead. quite the opposite for as a seed capital and the founder steve cohen. charlie gasparino has the story. let's make a winner sandwich. winners on the s&p. ♪ [ male announcer ] the mercedes-benz summer event is here. now get the mercedes-benz you've always dreamed of. but hurry...because a good thing like this won't last forever. here you go, honey. thank you. [ male announcer ] see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. ♪ on the exhilarating c250 sport sedan. we replaced people with a machine.r, what?

customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

and so too is the summer event. now get an incredible offer on the powerful c250 sport sedan. but hurry before this opportunity...disappears. the mercedes-benz summer event ends july 31st. dagen: bottom of the hour. here's what is coming up on "markets now." detroit is bankrupt. how these automakers can or can't help. and the fed's case against sac capital and why charlie gasparino says the firm is built around saving the man at the top

of the heap, steve cohen. pull the popcorn in china. hollywood films not making it into chinese theaters and the list is growing. connell: let's go back to nicole now. we're going to talk bea sports and electronic arts. you thought, big news, nicole, there would be no college games, ncaa, no deal. boy that would hurt the company but not today, right? >> that is very big news. that is not great news for electronic arts. today they're focusing on quarterly numbers and says that they have had. the stock is up 12 and a quarter percent. 26.74 at the moment. the loss was narrower than expected. they're in the middle of a transition away from games you buy at retail stores which is gamestop and the like and moving to downloads. that is really where they're making a lot of money, online, offerings, digital sales. that is accounting for more than 76% of first quarter revenue according to the chief financial

officer. they have a battlefield and fifa just to name a few. a stellar performer for this videogame company. back to you. connell: thanks very much, nicole. >> union stopping the detroit bankruptcy filing, suffered a major set back. the michigan court of appeals put on hold the challenge to detroit's bankruptcy. clearing the way for the federal bankruptcy judge to review the case in court. connell: to talk more about this, elizabeth macdonald is covering. this see. mack's bottom line. >> good to see you guys. steven rhodes we're looking to see a ruling whether u.s. federal bankruptcy law preempts, basically overrules state law in michigan that says pensions and retiree health benefits can not be cut. the thinking is u.s. federal law may preempt state constitutional law. that is what the judge will decide on today. we have $18 billion in debt

detroit owes. nearly 10 billion of that is for retiree pension and health benefits. whether or not they can be done is at issue today. there is other news. kevyn orr, he will argue in court, basically overseeing the bankruptcy for detroit, he will say that the city used dubious accounting to basically understate the amount owed. that will be part of his argument today. more breaking news coming out of what's happening in detroit. gerald rosen is expected to be named the mediator between the unions and the city. he is a chief district judge for the eastern district of michigan. he has been active in gop politics. he is known for basically taking a stand that is unpopular so long as it comports with the law. he reportedly ran against democrat sander levin in 192 but lost. we'll see if gerald rosen is the mediator appointed to duke it out or rather, help oversee the mediation between the city and the unions.

i will give it back to you guys. dagen: thank you very much, liz. good to see you as always, elizabeth macdonald in the newsroom. detroit is not getting in the way of booming business for auto-makers. ford reported better-than-expected earnings. its second quarter profits climbing in thanks to major part to strong truck sales and higher vehicle prices. we have the editor of cars report.com with more. again, it's the truck business but does that help devote at all to ford based in detroit? >> that is one of the big problems. the auto industry is booming but the auto industry is not in detroit. ford is in dearborn, chrysler in auburn hills. general motors has headquarters but don't make a lot of cars in detroit. a lot of build something going on in michigan and other states of course. dagen: look at the average vehicle price nationwide for a

new vehicle is above 31,000. the big truck sales for a truck, i think the average price is well north of 40,000. but are they going to repeat the same mistake they made back in the day when they were completely relying in the '90s on these big vehicles and the market dried up for them and boom, they all fell flat on their face. ford didn't go bankrupt. >> i see estimates that ford makes 90% of profits off truck sales. that is not much you can do. when you're selling calendar year, so far, 360,000 vehicles alone you will get profits from them. they're not relying on it though. their fundamentals are strong. competitive cars in the mid-sized segment with fusion, focus and compact segment. you have ford escape doing very well. they're not relying on truck as much anymore but when they're selling well you can't help but make profits. >> the story is the same for general motors. you have the new silverado coming out. truck sales are great for them. but the smaller cars, that is a

huge bright spot for the american manufacturing sector. these cars are terrific inside and out. >> yeah. through june, truck sales in general for the big three up 22, 23, 24%. sales of the company broadly i think ford is up 13% and chrysler and gm are up 8% each. obviously trucks are driving this. they have more competitive cars. they're slipping into the top 20 of sales and matching up a little bitter against foreign competition. there is more after focus getting those cars right. you can't just rely on somebody buying a pickup truck and picking up a mid-size car in the dealership. that is happening because the cars are good. dagen: housing, how critical is housing to the pickup sales? >> that is exactly where it's at. that is the sort of business that is driving this. not all consumer purchases. a lot is business sales. that is good for the industry, chrysler as well and ford will have a new one next year. they will keep the momentum

going. they will probably introduce the new f-150 at the detroit auto show in january. dagen: we can't wait for that, right? f-250. >> more important, new ford mustang will be showing up sometime soon. dagen: interest rates are going up, that is worrisome is it not for all the automakers? >> can't help i should say but i don't think it will hurt too much now. obviously doesn't seem to kill sales at moment. dagen: i made this gesture because i just love cars. it wasn't directed at you. >> that is what you love. dagen: i love anything. anything with an engine in it for the most part. give me a speedy lawn mower i'm all over it. >> did you see the honda going 130 miles an hour. dagen: 130 miles an hour. george jones, may he rest in peace, thank god he wasn't riding that. gary, good to see you. thanks very much. fox car report.com. connell: there you go. we'll shift gears big-time to talk from lawn mowers to sac capital. this big story on wall street and criminal charges are expected soon against the firm. so charlie gasparino is coming

in. he will show us why the government will argue that the firm is constructed to protect the man at the top. so we'll talk about that, steve cohen. we'll also talk about lance armstrong. he says ride something out there. sponsors should have known about his drug use. he wants to keep the money they spent on him. we'll see if that argument holds up. you see it here, "despicable me 2" being kept out of the theaters over in china. the business impact of that is coming up for you as well. keep it here. "markets now." 2.6% on the 10-year treasury note. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t

have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪

>> i'm jo ling kent with your fox business brief. new home sales jumping to a five-year high in june, a sign the housing recovery is strengthening. home sales are still below a pace consistent with a healthy market, they have risen 38% in the past 12 months, the biggest annual gain since january of 1992. shares of transition therapeutics soaring after the canadian company announced purchase development and marketing rights for elylely's experimental drug for arthritis pain. elily an acquire the rights upon review of proof of concept study. shares of underwear maker maidenform jumping more than 20% on news of a buy yacht.

hanesbrands is buying company for $575 million. they will add brands like maidenform to the haines roster. that is latest from the fox business network, giving you the power to prosper.

connell: don't worry about it. dagen: don't worry about it. for get about it. connell: that is what charlie might say. he is here in a second once he gets toweled off. dagen: he has a beautiful terry cloth towel. why he is here, criminal charges are expected against the hedge fund firm sac capital. >> see my gold chains? dagen: can't miss it. >> just so you know -- dagen: you look good in gold. >> just so you know, i love fox business so much, i literally got stuck in traffic midtown and ran here to talk about the story. dagen: i thought you were in the gym. connell: talking about sac. >> here's the thing i have been reporting for weeks. connell: you wrote the book on

it. >> wrote the book on it, "circle of friends." don't believe everything you see in the paper, that this thing is over, just not because they're not going to file criminal charges against steve cohen that the story is over. it is not. the company itself is likely to face criminal charges. how they will do this i can't tell you. will they do a rico charge? possibly. steve cohen's massive fortune, who started sac, steven a. cohen. massive fortune, those of the fortune is in that fund. what i think they will do as part of a deal, or go to court if he contest this is, they will try to extract as much of that fortune as possible in court, in a plea deal and whatever comes out of this thing which we'll know in couple days whether he fights it or whether he settles because this is pretty serious stuff. i will tell you this, the justice department, that is what my book's about, really believe steve cohen set up, this is them speaking, not me, a criminal enterprise that was designed to work a lot of it on inside

information. if you believe insider trading is a bad thing. we had debates. you think it is. the u.s. attorney came up to me during the washington core respondents dinner, you wrote a book about insider trading you don't think it is a big of a crime. no offense you convicted all the people thrown them in jail for many years, that is a big story. that is what the book is all about. they believe steve cohen created an enterprise that exists off illegally -- connell: don't have enough to charge him personally. >> and created the perfect system to protect the guy in the middle from all the goes around the side. that is why they're indicting the firm. i will say this i think eventually, this is my opinion, they will bring charges against him, criminal charges. i think there's a lot stuff they can do. dagen: the burden of proof is so high though in insider tradeing. >> it is high. you need cooperators. i think they will find a cooperator. mathew martoma might not cooperate now. michael steinberg may not.

two sec traders at the heart of some of the most allegedly egregious actions, what the government believes is egregious. they both say they're innocent. if they flip, particularly steinberg because the statute of limitations has not ended yet, then, you know, you got a case. you know, there is, there is the arrest of steinberg. kind of an interesting video. you know what is interesting about this just from a publicity standpoint from the u.s. attorney and fbi, how does a reporter know they will arrest him at that point? is this reporter walking down the street, oh, here's an arrest. dagen: in the middle of the night. >> my book actually talks about how they set up arrests with reporters there so they can film it. there is a public relations angle to this which the book gets into. this is big news. i think, these charges will come down any day now. if they came down today i wouldn't be surprised. i think most likely on friday. that is usually when they have been doing this stuff. then we'll see where he go from there. that will be interesting, when you indict a firm, here is the interesting thing.

when they charged steve cohen failure to supervise, not fraud. something they can throw him out of the business with by the way. there was additional information there. there was interesting additional information. we'll see what is in this indictment when it comes down, which, i mean, all likelihood, it will. unless they settle, that's what we're hearing, we'll see what additional information is in there and then you may see where they go with this thing next. interesting to see where this goes next couple days. dagen: want to wipe your brow. >> i'm cooled off. i'm ready to go 10 minutes. dagen: we can wipe that thing off, baby and sell. >> i don't think anybody wants my sweat. >> considering the amount of alcohol that was in my body. connell: there you go. it is all out there now. >> that i obviously sweated out just now. connell: on the air live. you got here. that is one thing. dagen: awesome. connell: great talk, gasparino. piece of work but a great reporter. dagen: probably doing shots in sweats. >> come on. stop it. >> i always wait until 6:00,

okay? connell: after hours. have a good one. charlie gasparino. let's go to jason weisberg, seaport securities at new york stock exchange. we'll shift gears from charlie gasparino's sweat to talk about earnings. sorry to bring you in on this, jason, we talked earlier about apple. we had good reports out today. too much hype? how do you see the innings season? >> i think earnings season is no short of greatness right now. i mean everyone expects dismal, dismal, dismal and when you get positive upside surprise you just mentioned apple and the financials have been really impressive, you know it is pause for concern for people trying to will the market down so to speak. they're trying, you constantly hear people, pundits are talking about reasons why the market should be selling off, why we should be trading at much lower levels but you know what? earnings prove we belong where we are. supply and demand is taking over. end of qe is coming. it is all anticipated. the market is acting really

healthy. without the hand of the government at play i think it bodes very well for things to come. we need financials to lift us. their earnings have been great. they have been lackluster. if the government find out how to take another bite out of their pie, we might be back in a world of uncertainty again. that is what we have to worry about. connell: jason, good to see you as always, especially following up on charlesly. we'll talk to you soon. dagen: did you get a photo? connell: i did. everybody saw it on tv but i took one. dagen: flash -- connell: somebody walked in literally with towel in their hand. first time that happened. maybe not the last. dagen: we love charlesly. at least he was here. let's move on to lance armstrong. his argument against the federal government whistle-blower lawsuit, hey, the postal service should have known i was doping. we kid you not. connell: speaking of firsts, that's a new one too. at the top of the hour the platform fire in the gulf and what it means for the energy markets.

new details on that still ahead on markets now. we look at some of the winners including of course apple. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. all on thinkorswim. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do.

we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-fo-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.

connell: back to talk about lance armstrong here for a moment. the disgraced cyclist of course. he is now telling the u.s. post office he delivered on what it paid for. armstrong is claiming the post office's civil lawsuit against him should be thrown out because u.s. postal service authorities should, they were well aware in his view of doping allegations against him and they benefited from his success. should have known. lawyers for the cyclist also arguing the case is too old and barred by the six-year statute of limitations. we'll see how that goes.

dagen: it's a whistle-blower lawsuit, the federal whistle-blower lawsuit the government joined that i floyd land does filed. they can join a lawsuit with an individual if they allege they defrauded the federal government. he get as cut. 120 million-dollar potential lawsuit and lance would get a third of the money. connell: kind of interesting way to fight against it, everybody knew i was on drugs, come on. dagen: disgraceful. talk about a great divide, china the world's second biggest film market is blocking some u.s. summer movies from entering the country, so why the restrictions and what does it mean, the standoff for hollywood? this just in, there's a lot of number of people in china would like to have them go to the movies. dennis kneale with the details for us today. >> guys, it is inexplicably despicable. "despicable me 2" getting a thumbs down from chinese censors. comcast universal film. it is approaching $600 million.

dominated the u.s. box office three weeks running but now china says no. we don't know why that is. they don't exactly explain. then i start checking around, sources tell me that paramount's a brad pitt zombie fest, "world war z." that was turned down initially. now we're hearing "world war z" will not open in china at all which deflation the film tens of millions of dollars nextra revenue. "iron man 3" came out, did $120 million in china. it was allowed to get into the country. "iron man 3" was made with a chinese partner and made script changes to make it more interesting over there. all this happened at time when u.s. and foreign-made films seem to lose ground in china. the entire china box office in the first half grew 36%. u.s. and foreign made films tickets went down 21% as china-made films went up 160%

locally in the box office in that country. not only are chinese censors attorney turning down popular u.s. made films. connell: maybe they're making better films. >> better suited to audience. connell: exactly. there's that. dennis kneale joining us on his birthday. happy birthday to you. >> when you get this age turns out happy? no, it is your birthday. connell: 29 again? >> thank you so much. dagen: taking shots at charlie's sweats on the birthday. >> what are you talking about? i didn't know what that reference was about. dagen: he was in nix sownian sweat. he said it was alcohol. i said, hey, use some shots. >> or albert brooks in broadcast news. connell: check it out. if you get a chance. maybe not. >> i've seen charlie sweat plenty. connell: came sprinting in here. dagen: happy birthday. >> thanks a lot, guys. connell: more dennis coming up. well, that out of control gas drilling rig fire, we talked about this on our show as well, off the louisiana coast, just

150 miles from the bp spill. that continues. new developments as dennis and cheryl will be joined next hour by somebody to talk about the dangers of drilling first-hand. the ceo of oil and gas driller bright link oil, chris faulkner coming on. dagen: pepsi's better-than-expected earnings, those too. we'll talk with pepsi's chief financial officer hugh johnson coming up.

good. >> hello, i am dennis kneale. >> i am cheryl casone it. the dow jones is up. pepsi one of the big stories today. with pepsico's chief financial officer. dennis: president obama

delivering a major address on the economy. it is all getting canned for no do ideas. we will have the speech reaction coming up. this is about 150 miles from the site, this is a very vivid picture of the danger of drilling oil and natural gas. first, breaking news. it is the birthday of dennis kneale. dennis: and viewers finally say yes, he is a dunce, look at that. [laughter] cheryl: it might've been my idea. dennis: thank you so much, guys. cheryl: we have nicole petallides at the new york stock

exchange. reporter: that is right, let's get back to these markets. you see the nasdaq composite doing nicely today. we are watching the dow jones approach 1700. here we see the s&p 500. on the move. it is earnings season. the dow jones is down, lots of names doing really great. dennis: thank you very much, nicole. stop picking out, the old adage. bears make money and pigs get

slaughtered. our next guest says that it is time for us to stop digging out. the chairman and chief investment officer joins us now. thank you so much for being with us. we have revenue growth that is nonexistent. it is time to simply reduce risks and exposure.

>> they need to reduce their exposure and at this point time and is a great time for long-term investors to make sure that they are not overweighted. what happens to so many people and they don't realize this. this is the volatility on the downside that wipes out. dennis: they believe that it's good, but it's just that stocks have raised up. >> yes, and yes. evaluations are stressed and the market justification for these is not real. the economy is going to have real issues in the fall. whether it be china that we are looking at or the reality of the sequester. those cost cuts are really now kicking in.

dennis: you know, we have been doing vastly better since the sequester and the annual deficit seems to be going down by hundreds of billions of dollars. it seems like the market likes that out more and fears of slower growth. the growth beard is not growth at all. >> i don't disagree, but i know there are a lot of families in the military that are working four days a week instead of five. they are not going to be able to buy like to have the budgets are reducing and its huge positive for us to reduce reliance on borrowing. however, the economy is not going to grow as fast and revenue will not grow as fast. we know that the margins cannot continue to expand when they begin to continue to extract from we are going to see earnings grow slowly. a couple of names, whether it be mcdonald's or others, companies are doing a great job. but at a certain point it is

evaluations that really matter. if you buy what is expensive, you will get hurt in the long run. dennis: when you buy a little bit, the dow was up 15,546 right now. i think it is over 16,000 by the year end. or is the dow jones by the year-end? >> you know, it is hard to put it on a specific date. i will say this. stick with your game plan. if you execute your game plan, you will be accomplishing your objective. but if you are a couple years from retirement or you are not doing the averaging, i would envision that we are going to see a very normal timbre and october. what does that mean? probably not a lot of fun. i think we will pull back here on the third and fourth quarter. then we will see a rally for the

16,000-dollar target on the dow jones. people need to be looking at the dow jones nonfinancial visors are getting in trouble for making you lose money and making you miss out on the upside profits. it is good to see. cheryl: president obama scheduled to deliver what the white house billed as a major address on the economy rich edson is there saying that this is repetitive for many republicans. >> it is consistent with democrats and that is the way they are doing does. we asked them what you hear anything new in this speech. issthere any point series of subjects on his new policy proposals in this.

the white house claims congress. >> we are focusing on the american people and that has been going on for far too long with short-term political interest in dean plans and posturing, given the way of unleashing a great potential that people want us to unleash. >> he will criticize or publicans for not understanding his policies, but will leave out the fact that democrats do just that in the economic recovery is still stagnant. >> president obama will frame his economic proposals and try to build momentum and support as he heads into the negotiations with the house of representatives and of course,

the debt ceiling was between mid-october and mid-november. major economic policy coming up and the president getting ahead of that. cheryl: we understand that john boehner could be making some comments that you monitor that as well. is that correct? >> yes, he started talking about this. so republicans have been on this pretty much from the onset of the white house announcing his economic speech is. cheryl: okay, you will be monitoring those comments from speaker boehner. thank you so much, rich edson. >> thank you. dennis: don't go anywhere. we of special coverage of the president's speech and reaction that begins later this hour and anchored by the womanly lou dobbs. we will have that coming up. cheryl: coming up next, going one-on-one with pepsico chief financial officer steve johnson.

the company coming out with blowout earnings today. there are some headwinds. we will talk about that area and. dennis: i will be interesting to see what pepsi says about coke. and homebuilders think the fed. a five-year high as buyers try to beat out those mortgage rates. how you can cash in coming up next. cheryl: bloomberg once again in the spotlight as the new york attorney general investigates the editor in chief. matthew winkler. and then we will talk about the energy markets. we have inventory data today. down on that data and we will be right back with the spark cash card

from capital one... boris earns unlimited rewards for his small business. can i get the smitcontract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses deserve unlimited rewards. read back the chicken's testimony, please. "buk, buk, bukka!" [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i'd get half. what's in your walle

dennis: time for stocks now. stocks and gains, let's check with nicole petallides format

that is right, checking this out, we have some numbers. it is down 1.5%. down nearly 4% it is under some pressure despite the fact that home sales hit a five-year high. we have seen back-and-forth action in this group is quite volatile. it often is correlated at least in part and we are seeing this ten-year higher yield at 2.58%. continue to watch mortgage rates on the rise, and that is in part a move of the homebuilders. the good news on the home sales. back to you. dennis: thank you, nicole. cheryl: pepsico, second-quarter results reading the street for

the market opening today. earnings per share at $1.28 versus $1.19. joining me for more on the numbers is the chief financial officer steve johnson. good to talk to you about the numbers. >> at the top you as well. cheryl: i was looking at the breakdown here in north america. but if you look at the numbers, which you know very well, the sales were up about 2%, but you saw some pressure on the government side. mayor bloomberg, the state of california who is now screaming about this and so forth. the thing that is having an effect on the business of pepsico? >> no, i would not say that at all. in fact, i think what you see right now is the pepsico portfolio working. there are times when the food business is going to be up and the beverage business will be softer and other beverages will be up and food will be a little bit softer. really what you're talking about there is if you look at our performance outside of the u.s. come in the beverage volumes

year-to-date international erupt 5%. outperforming the competition. the beverage business is really doing quite strongly. we are developing an emergency markets business as well. the revenue is up 11 and marketer of 14. what you're talking about is a north american challenge and we're working through that successfully right now. cheryl: we are seeing more positive numbers come from the middle east and africa. i know that you and coca-cola, your competitor are battling. home?ou trying to fix it here at >> yes, i think that is exactly right. one of the things is invest in the portfolio. we feel that the portfolio is inotropic spot. disposing of six consecutive quarter, which is a long-term guidance. what you see happening is

beverages reinforcing snacks and snacks reinforcing beverages and we do feel like the portfolio is just working terrifically well. that combined with productivity initiatives because we are relentlessly focusing on a lot of value for show partners. you saw that in the results were cheryl: you have new products coming out you have the gatorade brand do you think we can tab and check out against that this needs to be part of our portfolio and you know,

obviously that a initiative is off to a great start. so it is creating this when people want to indulge. >> i do have to ask you about this stock. it is up about 24%. we are seeing those numbers in the double-digit performance. you talk to someone, like he is saying that you should discard the beverage business, go buy this and focus on food and snacks. i know that you have been dealing with these rumors and, you know, you have to ask the question that may be a change is

in order for pepsico. >> the stock price performance makes the point that you're making. we leave this is working so well right now and the idea is taking on an 80 billion-dollar acquisition going through all the risk of integration and paying a premium for that business. >> we think that we have the portfolio right and we are not interested in doing large deals. we hope that by focusing on the or polio, that is the way to deliver value for shareholders. cheryl: especially considering the stake as well. hugh, thank you so much. we will talk to next quarter. >> thank you, take care be one edward snowden gets his immigration papers. where is the next? we have that next. cheryl: fox business have

special coverage today of the president's speech. he is expected to address the economy. lou dobbs will be answering the best of the coverage coming am laaer. and taking a look at how these stocks are faring and the u.s. dollar. $1.32 for a euro. we will be right back. friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ mamale announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.

if then schwab is the placeing your trato trade. higher level, tdd#: 1-800-345-2550 and apply online. call 1-888-577-5750 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and tre with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. can use it on the web. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 also, get a dedicated te of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550 get all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 call 1-888-577-5750 or visit schwab.com/trading tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commission-free tdd#: 1-800-345-2550 online trades for six months with qualifying net deposits. tdd#: 1-0-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550

so call now. tdd#: 1-800-345-2550

reporter: at 22 minutes past the hour, we have your fox news minute. president obama delaying delivery of four f-16 fighter planes to egypt. the decision was made with unanimous consent, given egypt's political situation, the white house says it is still determining whether the egyptian military's ouster of president mohammed morsi was a coup. in moscow, the lawyer for edward snowden says that his asylum status has not been resolved. that it intensifies work in russia and sells it somewhere here. the white house is seeking clarification about snowden's status. and in london, the two-day-old royal baby is headed to his maternal grandparents house.

keeps parents live in a village west of london. bookmakers have george is the favorite name followed by james. those are your news headlines. stay on time to make some money with charles payne. he is following up on lumber liquidators. >> i did this last year with you guys. but here's the thing that i wanted to really talk about. so much anxiety from the market is high. let's talk about the lumber liquidators yesterday to today. are you nuts? are you kidding me? this is a 16 trillion-dollar economy. this creates opportunity. so stop giving up on america, as far as the stock market is concerned, there are ways to find winners or losers.

when investments are based on a few things. i saw something remarkable. his 36 month year old store has been open. typically the older the store, the lower this store sales. but the numbers that came out this morning showed operating margins expanding. first order he went 11% to 7% and 12.9%. cheryl: when you are talking about this stock, he said go for it. our viewers would've profited if they would've listened to you when you made that call. >> absolutely. >> lumber liquidators all of the time, it is not the 6 degrees of

kevin bacon, one or two.you have to connect. one or two. i want everyone to watch it, we promoted it on twitter. we hate economy, we hate the fed, this and that, imagine a year ago where someone goes to buy a car and they go to the ford dealership and they have three or 4000 to put down. because they want cash or whatever it is and 0% financing. in other words, this notion that you will become a hermit, buy a gun, and wait for this to go, you are missing the opportunity of a lifetime and i will help you understand and connecting the dots. 8:00 p.m. eastern. cheryl: good call.

well, it is the fox business summertime showdown and we are down to a few players now. charles has his opinions about the showdown. >> i love the showdown. >> these two will return and who will have to say goodbye? here is a hint of what is to come. this is one of the stocks chosen by jim. i'm not showing that the shabby take it all. take a look at the stocks, here we go. take a look. thank you very much. who picked this? out, not a pretty choice. don't help this guy out yet. only on fox business. you have to be careful because viewers are very specific. dennis: we won't wait too long for the answer. nobody likes that.

coming up next from a fire burning off the louisiana coast. we know firsthand about those dangers and chris faulkner will be joining us on this matter. cheryl: plus, coverage of the president's speech an update of the economy. lou dobbs will be here for our coverage.

dennis: time for stocks now. get to the floor of the new york stock exchange with nicole petallides. let's talk apple. >> why don't we talk apple of all the shareholders are pretty happy to see moves we've been seeing on apple, up five 1/2% today for apple. obviously this world's largest technology company came out and their iphone sales did very well.

also the fact that the ipad sales also on the rise but the iphones really impressed wall street. they sold 31.2 million iphones last quarter. that exceeded the 26 million estimate. and 14.6 million ipads. and the chief financial sister was saying how in china they expect to continue to look good there. cook even said china's a huge opportunity for apple and i know apple was over $700 last sent but it is looking good today with these numbers and at least it quells concerns for the time-being that the iphone is out of favor. this says, the iphone is doing pretty good. back to you. dennis: thanks very much, nicole. cheryl: so the dangers of drilling for oil an natural gas, take a look at this. an out of control fire continues to burn at this hour at a natural gas well off the louisiana coast. this is just 150 miles from the site of the 2010 bp deepwater

horizon spill. the blaze began yesterday just hours after 44 workers were safely evacuated from this rig following a mid-morning blowout. there were no injuries reported. joining as you man who knows about first-hand the dangers of drilling, ceo of bright link oil, chris faulkner. good to have you. you know this region, very, very well. how concerned are we that it will take the time to cap the well and get the nat-gas cleaned up out of the water? >> i think there is always that risk it will take them time. they may have to drill another well to go into that well to shut it down. there is opportunity hopefully that wild well control can put it out without that having to happen. it is possible this could go on for some extended period of time. cheryl: this could go on what does that mean? are we talking days, weeks? >> it could be weeks it, could be months. i hope we get it resolved the next few weeks. it is too early to tell what the

time frame is going to be. it is producing just natural gas and not oil. there is a small sheen in the area. they're working on it already and hopefully they can put the fire out and get it under control. cheryl: this is certainly, with this relief well, i know that is what they're talking about, making a relief well to actually stop this. i'm curious where we're at as far as production. this brings to mind for many horse horse -- deep horizon well from bp in 2010. >> sure. cheryl: we want to see more natural gas drilled on the coast? >> i think it is at an all-time high as far as safety. i will make a caveat. i said it before, when a human is evolved in any did not involved in any kind of process there i will will be risk there is no such thing as non-consequential energy, wind, solar, nuclear, they all have their issues. i think the industry has a very good safety record.

i think it is at an all-time high as far as industry procedures and processes. there are 55 rigs running in the gulf of mexico. there are 780 on the united states. majority of the work is land based. less than 4% of our energy comes from the gulf of mexico, it has been in heavy decline because of the moratorium in place because of bp spill things have not recovered but as far as safety i think it is at an all-time high. cheryl: chris, let's talk about money and the inventories out today. they're down, the fourth week we've seen oil inventories. what we're seeing demand is definitely increasing throughout the country for oil and nat-gas. distillates as well. when you look at these numbers, do you think that we're going to have to increase production? can we expect an increase in production and what will that do to prices on these contracts? >> well, if we have an increase in production, demand stays flat, obviously the prices will come down. we are seeing drawdowns for the fourth week in a row. keep in mind right now, refineries are pumping 93%

capacity as the summer driving season is in full steam ahead. they're pushing out a lot of distillate fuels. so right now the demand pull from the refineries is also very high. that will come down a bit as we go into sent and october. but, you're right, oil is at an all-time high. good economic numbers, housing numbers are better, manufacture something is up. those are positive indicators we're seeing more demand for oil. i think numbers will come back down. we're at $107. i expect it will be 95 to $100 in the winter months. >> speak and markets listen, cries. we're 105.11, down two based on inventory data. >> don't blame the messenger. don't blame the messenger. cheryl: never. chris faulkner, great to see you again. come back anytime. >> thanks, cheryl, good seeing you. dennis: "bloomberg news" and editor in me matt winkler are in the spotlight again as new york attorney general looks into

bloomberg reporters snooping on bloomberg terminal clients. jo ling kent joins me with more. >> i just got off the phone with the attorney general's office. they say they're not launching a on official investigation but sources familiar with the inquiry that the ag's staff is asking informal questions to find out exactly what bloomberg reporters knew about companies activities and their customers via the namesake terminals. that is according to "the wall street journal" according to attorney general eric schneiderman. in past weeks he is looking closer at how much access the reporters had from media and tech companies who subscribe to the terminals. this comes after goldman expressed concerns about reporters access to bankers and traders data which goldman felt was a violation of employee's privacy. the ag's probe follows inquiries made in may by the federal reserve and the treasury. in may, bloomberg lp said it opened its own review but no word on where that stand. dennis: thanks very much, jo ling kent.

still haven't heard any examples where this abused in any way but it's an interesting controversy. cheryl: we're minutes away from president obama's speech. he is expected to deliver what the white house bills as a major address on the economy. he will speak in illinois, knox college to be specific. moments ago house speaker john boehner took to the house floor ahead of the president's speech. he had this to say. >> republicans ha a growth plan, a plan for growth and jobs. we've been focused on that plan and we certainly welcome the president's ideas but the white house says it is not expected to say anything new and there are no new proposals in this speech. americans aren't asking the question where are the speeches. they're asking where are the jobs? cheryl: well, don't go anywhere. fox business will have special coverage of the president's speech. lou dobbs will be setting up right now as we speak. he will be anchoring our special coverage when the president comes out to address that college and the nation. dennis: watch for that. mean mile hawaii ranked the most

honest state in the nation. we'll tell you the area ranked the most does honest in west coast minute. [ indistinct shouting ] ♪ g ] [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪

>> tracy byrnes with your fox business brief. officemax is under pressure after the office supplies retailer announced its chief financial officer is leaving the company. now he has been cfo since 2009. he will be taking the same

position at supermarket chain supervalu. according to a new bank of america merrill lynch survey the top concern for the chief financial officers? health care. seven out of 10 cfos are more concerned about the impact of obamacare than they are about revenue growth, energy costs,3 even taxes. according to the daily camera, the colorado rancher recording studio who hosted art its like elton john and youtube is up for sale. the listing shows 1600-acres of the ranch plus the studio. the price, $45 million. the producer jim gersio bought the ranch back in 1971. that's latest from the fox business network, giving you the power to prosper.

dennis: gold was closing in on a one-month high earlier today but now suddenly it's in the red of the let's get the to the trading pits of cme to find out why. phil? >> i'll tell you why. chinese data kind of slowed down the momentum.

china is big consumer of gold. we got a bad manufacturing number. news in the u.s. is putting down gold. the numbers beating expectations and coming out better than expected. it is causing interest rates to go up. it makes bonds a better investment than gold. on gold, the world gold council came out and said be careful, scrap gold, it's going to fall by 25%. the demand and supply of scrap gold. of prices have been lower. the scrap goldmarkket has been one of the reasons why the market has been very well-supplied. people are selling gold because prices are high. they put it out into the marketplace. if those supplies start to tighten up it is another sign that supplies are tightening. another thing, rio tinto, bad earnings and bad things happening there. they're cutting back on capital spending that means less gold on the market. today it is all about the macroeconomics. later on i think it will be the supply or the lack thereof. >> all right. thanks very much, phil flynn.

cheryl? cheryl: dennis, we're coming up on quarter till right now. let's head to the floor of the new york stock exchange. we have mark newton of gray wolf partners. a lot of earnings points coming out too. is there too much hype with regard to the numbers we're seeing. companies are beating but were the expectations already lower? >> that is certainly the theme. companies have been beating on lower expectations yet we continue to see misses on revenue. some people are calling it a revenue recession. that will be difficult. we don't really know what the catalyst is at this point to take the market higher. we're up 18 last 21 days. we're seeing more signs of a falling out. treasurys made new highs and affecting yield type sensitive sectors and you lilts and -- utilities and reits. that had a real effect on a lot of commodity type sectors saying weakness in energy an also materials. combination of those, the s&p and the dow are both stalled out. nasdaq obviously carrying a bit high every because of apple but

yet not any sort of breakout because the nasdaq made new highs last week and failed to keep pace with the s&p and dow. cheryl: mark wolf newton. thank you very much. >> my pleasure, thank you. dennis: let's talk innovating in the public sector. organization code for america to put out the federal government's stone age i.t. the backers inconclude google throwing support hyped a few young tech firms leading the charge to revamp antiquated technology in government. we have texas based, anti-fugitive software developer street cred is one of those companies. joining us is street cred's cofounder and ceo. thanks for being with us, nick. just saying street cred makes me feel a lot cooler but tell me what is, a fugitive, tell me what that is? >> what we do, we help police agencies locate and find and then arrest fugitives, get them out of the community and get the cops home safely who arrested them. dennis: there is actual software

that does that? wow. >> yeah. we take information from a bunch of different places within the criminal justice system and outside, places where computers never traditionally talked. we bring the information all together and push it out to the police cars in one single screen. dennis: the problem is the antiquated government technology we're talking about. i used to tell my writers at "forbes" magazine you have to show, not tell. can't say, oh, it's terrible. give us two or three examples how bad government tech is. >> the place where the public comes into bad government software, really terrible stuff, is going to be at the dmv or anytime you go to the airport, right? the places where it actually does more damage is actually in the ocean that is the government bureaucracy, right? i sat in west texas and watch a college educated woman who we're paying with our tax dollars, her entire job is to sit with two computers in front of her, type the stuff in the computer on the left into the computer on the right. dennis: because they can't talk to each other. >> because they can't talk to

each other. the thing is, the public doesn't see this, fugitive officers are being knocking on doors to bring bad guys into jail they might not have information they need because the systems don't talk to each other. there is no excuse for that kind of bad computing. dennis: every time we talk about a government overhaul and budget billions of dollars and go backs r back to the 1960s, by throwing money at problem you will solve it. you never solve it but make it worse and more complicated. what does it mean for you guys and what does it mean you can now do for government to fix some of this? >> we're already working with government to streamline the process of finding and catching fugitives. the five companies who are selected by code for america, what we really do now is get together to talk about the ways we can all help each other get on to the national stage and talk to municipalities, talk to cities about the problems they have with computing. look at it from solving the problem from the ground up.

you know, the guys at smart procur, i never thought my wildest dreams that procurement wok sexy stuff. what they're doing, they're giving cities, looking at any object, a stapler, a table, a printer, find out the out how much the cities paid for it. with that transcurrency the governments can shop around. dennis: another question. irs big climate for yours. >> no, sir sir. dennis: there is future market. nick sell by. >> thanks for having me. cheryl: time for your west coast minute. when it comes to solar power california is among the top six of 12 states making the switch. the golden state along with arizona, colorado, hawaii, and nevada are leaders when it comes to progress in converting grids from coal and hydro electricity into solar power. california is number one when it comes to installations overall. panama-based copa airlines is expanding its las vegas

presence by adding routes to its current schedule. beginning sent 13th four new flights will operate from panama city to las vegas versus one flight. city officials in vegas highlights the importance of latin america to tourism in that city. and finally hawaii has been ranked one of the most honest states in the nation by beverage maker honest tea. when it comes to telling the truth, hawaiians and residents of alabama, by the way, tell it all 100% of the time. that is according to this report. here's a surprise though. if you look at the entire country, americans are pretty honest. 92% of the time we're honest. now the place in the country that is the most does honest according to the survey? drum roll please, everybody. it's washington, d.c. shocking. that is your west coast minute. dennis: man, that sounds skewed those results. that is just too -- cheryl: by honest tea. dennis: sounds like a rap star.

yo, honest t. president obama moments from now will deliver as what the white house is billing a major address on the economy, with no new ideas some say. it is already getting panned. lou dobbs will anchor our special coverage of that speech and reaction. that's coming up. cheryl: we're looking at the live pictures for all of you. we'll take a quick break. when we come back we await the president. there you go. do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet? how did he not see that coming? pcentury link provides reliable yit services like multi-layered

security solution to keep your information safe & secure. century link. your link with what's next. l your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side.

cheryl: president obama is in illinois to speak on the state of the u.s. dennis: and lou dobbs has this special report. >> cheryl, neil, thank you very much. good afternoon everyone, thanks for being with us on the fox business network. a special report. i'm lou dobbs. we're awaiting, to what the white house is saying will be a major speech by the president. he is pivoting to the issues of

jobs and the economy. his first such pivot of this calendar year. the president set to take the stage any moment now at knox college in gales berg, illinois. that may found familiar to you, because then state senator obama, delivered his first major economic address back in 2005. but even white house officials are privately acknowledging president obama today, will not being laying out any new economic initiatives. translation, no new ideas. and republicans have criticized already this speech as just the latest promise to pivot to the economy after doing so 11 other times during this administration. it is no secret that the economy has been largely overshadowed by the president's second term scandals, domestic scandals that

embroil the white house, scandals at the justice department, the internal revenue service, the state department and the president himself has chosen to focus on other parts of his agenda, including a failed effort to impose gun control and still ongoing talks and negotiations for so-called, comprehensive immigration reform, although the house says the "gang of eight" comprehensive immigration reform bill is dead on arrival. well, the president has connected jobs and the economy to that legislation, he has done so as well with the issue of gun control. he will arrive at gaylesberg to set off a series of back-to-back speeches he says will be important on the economy, ahead of key negotiations with congressional leaders on both taxes and spending and the likely showdown on both issues, both issues this fall. here is where the obama economy

now stands and it is not all bad news. we should point that out at the very outset. unemployment, stands at 7.6%. either 23.6 million americans are unemployed, underemployed, given up looking for work or marginally attached to the workforce. housing, the s&p case-shiller home price index shows that average home prices have, have just spectacularly rolled up, back up to about 12% over the past year. the mortgage rates are heading higher up from 3.5% in may to 4.5% for a 30-year fixed mortgage. still affordability indexes for housing in this country remain high. retail sales up just .4% in june, a disappointing rate but retailers are selling and the national debt, we're not hearing much about the national debt these days. it is just about $17 trillion,

$16.9 trillion. about the same size as the entire economy. the congressional budget office now saying that the fiscal 2013 deficit will probably decline to almost unprecedented levels, certainly unprecedented in this administration to just 4% of gdp, down 7% last year. but, the markets, they're at all-time highs no you hear complain about this economy and there are millions. the fact this president is very good for investors. president obama to deliver another economic speech as i said at the university of central missouri in warrensburg, to this speech. we're excited. i want to say that for the benefit of white house advisors who have been pushing the media to follow this speech. we are excited to do so and to learn what the president has in store whether they are new

initiatives or even somewhat, of traded initiatives. with us importantly fox business stocks editor elizabeth macdonald. because the stock market is extraordinarily important component of everything that i'm sure this president wants to turn around. right, lizzie? >> i agree. >> with us fox business contributor charles payne, following the markets as well, john lonski, clef economist for moody's capital markets. folks, thanks for being here. the president is probably two minutes away at this point. as soon as he steps on to the stage biel be going directly to him. lizzie, let's begin here. he has the backdrop of an economy struggling but markets soaring. your thoughts. >> markets soaring for sure. what is happening now the president is setting up bread and butter issues that affect the american middle class taxpayer at a time his poll numbers are down, when we have a debt ceiling fight coming october 1st. we have midterm elections coming

up. what i will watch for is about the mention of stock market gains and health reform and fight over controversies over health reform and success of sequestration. how that did bring down the deficits and there was no economic collapse from sequestration. >> it also brought down in the minds of many, spirits among retailers and others in this economy. chars, you're outlook? >> here's the thing. stock market, what a lot of people don't realize, the market moves up and down by growth. a major amount of growth is happening outside of this country. even this earnings period. when i look at earnings. earnings in america, down 2%. internationally up 2%. i don't care what the company is. the difference as far as a bottom line is prosperous global economy.